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Sep 30, 2021
CommScope Q3 2021 Earnings Report
CommScope's third quarter results reflected challenges from global supply chain disruption, increased material and freight costs, and a semiconductor chip shortage.
Key Takeaways
CommScope reported a decrease in net sales by 3% year-over-year to $2.105 billion. The company experienced a GAAP net loss of $124.2 million, and non-GAAP adjusted EBITDA decreased by 24.2% to $259.1 million.
Net sales decreased 3% year-over-year.
Core CommScope net sales increased 6% year-over-year.
Momentum built in Outdoor Wireless Networks and Venue and Campus Networks, with net sales increasing 31% and 8% year-over-year, respectively.
Non-GAAP adjusted EBITDA decreased 24.2% year-over-year.
Forward Guidance
The company expects significant headwinds to persist in the near-term due to global supply chain disruption, increased costs of materials and freight, and semiconductor chip shortage.
Positive Outlook
- Actively addressing external pressures.
- Engaging with customer base regarding pricing adjustments.
- Implementing operational measures to make up for inflation effects.
- Laser focused on executing on CommScope NEXT strategy.
- Achieving goals of incremental growth, cost optimization and shareholder value creation.
Challenges Ahead
- Ongoing challenges associated with the global supply chain disruption.
- Increased costs of materials and freight.
- Semiconductor chip shortage occurring across the industry and broader economy.
- Expecting significant headwinds to persist in the near-term.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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